Brazil's Itau-Unibanco Denies Talks To Buy Citi's Banamex
March 05 2009 - 7:45AM
Dow Jones News
Brazil's largest bank, Itau-Unibanco, has denied it is in talks
to buy Citigroup's (C) stake in Mexican bank Banamex.
"Itau Unibanco is not negotiating any stake in Banamex's
capital," the bank said in a statement late Wednesday.
Last week, Itau-Unibanco Chief Executive Roberto Setubal said
his bank is looking at possible acquisitions elsewhere in Latin
America, especially Mexico.
"We have a plan for overseas expansion and we will give careful
consideration to opportunities as they arise," Setubal said. "If an
important banking institution in Mexico comes up for sale, we will
give that opportunity very careful study."
Itau-Unibanco was formed late last year by the merger of Itau
(ITU), at that time Brazil's third largest bank, and Unibanco
(UBB), at that time the country's fourth largest bank. The new
merged bank is Brazil's largest financial institution. Itau and
Unibanco shares still trade separately, but will be unified into a
single new share on March 31.
People familiar with the situation said Citigroup executives
have weighed the possibility of selling the Mexican holding, Grupo
Financiero Banamex, according to a report in The Wall Street
Journal. Investment bankers estimate Banamex could be worth at
least $9 billion, according to the report.
"Citi has no intention of selling Banamex," Citigroup spokesman
Jon Diat told The Wall Street Journal.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521;
rogerio.jelmayer@dowjones.com